Use the Information for the Question(s)below

question 4

Multiple Choice

Use the information for the question(s) below.
You founded your own firm two years ago. You initially contributed $250 000 of your own money and in return you received 2.5 million shares of stock. Since then, you have sold an additional 1.25 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.
-Suppose you sold the 1.25 million shares to the angel investor for $500 000. What was your percentage ownership in the company immediately following the angel investor's investment?

• A)70%
• B)73.3%
• C)100%
• D)75.0%

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which increases or decreases the likelihood of a behavior being repeated.

Young Children

A phase of early childhood encompassing the ages from infancy through early elementary years, typically considered to be ages 2-6.

Reinforcer

In behaviorism, any event that strengthens or increases the likelihood of a behavior being repeated.

Senses

The physiological capacities of organisms that provide data for perception, including sight, sound, taste, touch, and smell.